Section 8 Fair Market Rent (FMR) for ZIP 94611 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 94611

• Oakland Housing Authority (Oakland, CA) - 14,343 Section 8 vouchers
• Housing Authority of the County Contra Costa (Martinez, CA) - 9,811 Section 8 vouchers
• Housing Authority of the County of Alameda (Hayward, CA) - 7,132 Section 8 vouchers
• BERKELEY HOUSING AUTHORITY (Berkeley, CA) - 2,135 Section 8 vouchers
• CITY OF ALAMEDA HOUSING AUTHORITY (Alameda, CA) - 2,059 Section 8 vouchers
• CITY OF PITTSBURG HSG AUTH (Pittsburg, CA) - 1,140 Section 8 vouchers
• HSG AUTH OF THE CITY OF LIVERMORE (Livermore, CA) - 938 Section 8 vouchers
• Housing Authority of the City of Richmond (Richmond, CA)
• Housing Authority of the City of Pleasanton (Pleasanton, CA)

When considering whether to invest in ZIP 94611 (Piedmont, CA) for Section 8 properties, follow this decision tree:

• Does FMR $2390 (zip FY 2024) clear debt service on a $1,401,766 property?
  • Yes. The Fair Market Rent (FMR) of $2390 per month can cover the debt service on a property valued at $1,401,766. Assuming a typical mortgage rate of around 4%, the monthly payment would be approximately $6600. Given that Piedmont has a median household income well above the national average, landlords can expect a steady stream of Section 8 tenants who can afford their share of the rent, ensuring the total rental income meets the debt service requirements.
  • No. If the debt service exceeds what can be covered by the FMR of $2390, then purchasing a property for Section 8 purposes is not financially viable. Landlords must ensure the combined income from the tenant's portion and the Section 8 voucher covers the mortgage payments, property taxes, insurance, and maintenance costs.
• Is market rent $2,609 (ZORI) above, at, or below FMR?
  • Above. With a Zillow Rent Index (ZORI) of $2,609, market rents exceed the FMR. This suggests that while landlords can charge higher rents outside of Section 8, they will need to consider the availability of vouchers and the willingness of tenants to use them. High market rents might also indicate a competitive market where Section 8 tenants are less likely to find units.
  • At or Below. If market rents were closer to or below the FMR, landlords could more easily attract both Section 8 and non-voucher tenants. However, in ZIP 94611, market rents are above the FMR, which complicates the situation. Landlords must weigh the benefits of renting to Section 8 tenants against the potential for higher market rents.
• Are 39.4% renters + 17-day DOM enough demand?
  • It Depends. In ZIP 94611, 39.4% of residents are renters, indicating a moderate level of demand. The Days on Market (DOM) of 17 days suggests a relatively quick turnover for rental listings, which is positive. However, landlords must also consider the number of Section 8 households in the area and the local housing authority's policies regarding voucher usage. A thorough understanding of these factors is necessary to determine if there is sufficient demand for Section 8 properties.

In conclusion, ZIP 94611 presents a mixed scenario for Section 8 investment. The FMR can cover debt service, but market rents are higher, potentially reducing the pool of available Section 8 tenants. Rental demand is moderate, and while the DOM indicates a healthy market, the specific dynamics of Section 8 in Piedmont must be carefully evaluated.

Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.